Credit Card charge against property, advice on options when selling?

ideal_knowledge001

John1993 wrote: »

He can sell it at the right price, so isn't stuck at all. He's only "stuck" as he's trying to screw over the people to whom he owes money by selling the house at the wrong price.

Hi Jon your comment is fair, but he will pay the credit card people but just not now he cannot afford it although he does pay small amounts every month.

holly_hobby

ideal_knowledge001 wrote: »

Hi Jon your comment is fair, but he will pay the credit card people but just not now he cannot afford it although he does pay small amounts every month.

He pays the 10k out of the 200k sale price, assuming the mge (1st charge) isn't in excess of 190k of course !

If you mean, will the ccard provider, allow him to sell, not repay them (but agree a monthly repayment plan), and for they to remove their charge ..... then no (although a lovely idea for your Uncle) there's no chance, he's already defaulted once, and recd a CCJ and charging order to boot (due to non-satisfaction of the CCJ) - so he's unfortunately rather blotted his copy book there !!

ideal_knowledge001 wrote: »

Thanks Holly you have been very helpful. Is there a way I can find out the exact charges on the property?

They may apply to Land Registry for a registry and details of chargees, but they already know its the mge lender and cc provider don't they ? Or are there more lurking ?

Holly x

John1993_2

ideal_knowledge001 wrote: »

Hi Jon your comment is fair, but he will pay the credit card people but just not now he cannot afford it although he does pay small amounts every month.

I'm afraid that they won't let him do this, they will stop him selling the house unless he sells it for market value.

To make the point again, he's not stuck at all, he can sell and clear his debts, but not sell cheap to family.

ideal_knowledge001

John1993 wrote: »

I'm afraid that they won't let him do this, they will stop him selling the house unless he sells it for market value.

To make the point again, he's not stuck at all, he can sell and clear his debts, but not sell cheap to family.

Thanks Jon I think the best thing here will be he sells high enough to clear off the cc charge and then the son adds the extra deposit money as he cannot get a mortgage for more than 150k.

ideal_knowledge001

holly_hobby wrote: »

They may apply to Land Registry for a registry and details of chargees, but they already know its the mge lender and cc provider don't they ? Or are there more lurking ?

Holly x

The thing is they are not 100% sure how much the charge is and there maybe 2-3 charges so it's best we find out the total charge first, I have contacted land registry to get in touch with myself regarding this so fingers crossed will hear something soon.

The dilemma is the son will have to wait a bit longer maybe because he can only take out a mortgage of 150k so he will have to save a bit more for the deposit.

ValHaller

John1993 wrote: »

I'm afraid that they won't let him do this, they will stop him selling the house unless he sells it for market value.

To make the point again, he's not stuck at all, he can sell and clear his debts, but not sell cheap to family.

He does not have to sell for market value and if there is enough equity, he can sell cheap to family. The real position is that the bottom price is enough to cover debts on the property plus his selling fees.

John1993_2

ValHaller wrote: »

He does not have to sell for market value and if there is enough equity, he can sell cheap to family. The real position is that the bottom price is enough to cover debts on the property plus his selling fees.

The problem is he wanted to sell at a price that meant that he didn't have enough equity. It seemed as thoug hthe whole intent was to do so to get around the charge on the property.

So, via the scheme he was proposing, as it was proposed, no, he could not sell cheaply to family.

ValHaller

John1993 wrote: »

The problem is he wanted to sell at a price that meant that he didn't have enough equity. It seemed as thoug hthe whole intent was to do so to get around the charge on the property.

So, via the scheme he was proposing, as it was proposed, no, he could not sell cheaply to family.

Without going into the motives involved, there is enough equity for him to sell cheaply to family. So he can sell cheaply to family within the constraints of the charges on the property. And that is what I said.

Why do you persist in saying he cannot sell cheaply when plainly he can? If you mean that he cannot sell more cheaply than the charges on the property, then that is what you should say.

betmunch

holly_hobby wrote: »

Thanks and hello stranger :wave: !


H xx

:beer:

Hello to you too, I see you are still keeping everyone well informed as usual!

ideal_knowledge001

ValHaller wrote: »

Without going into the motives involved, there is enough equity for him to sell cheaply to family. So he can sell cheaply to family within the constraints of the charges on the property. And that is what I said.

Why do you persist in saying he cannot sell cheaply when plainly he can? If you mean that he cannot sell more cheaply than the charges on the property, then that is what you should say.

Guys I think the plan going ahead would be to sell at £180k to the son meaning both mortgage and credit card charges will be paid back.

The son can only get a mortgage of £150k he has £20k for deposit so really he needs to save another 10k. So yes uncle can still sell cheaply to the son provided the charges can be paid off too.